President Bola Tinubu had in his inauguration declared that the subsidy era is gone, triggering a hike in the cost of the commodity across the nation.
But months after the move, Osifo, who is also the president of the Trade Union Congress (TUC), said due to the cost of crude oil in the international market and the dollar to naira rate, the government still pays subsidy for the product. “In reality today, there is subsidy because as of when the earlier price was determined, the price of crude in the international market was somewhere around $80 for a barrel. But today, it has moved to about $93/94 per barrel for Brent crude. So, because it has moved, then the price [of petroleum] also needed to move,” the PENGASSAN boss added.For the government to stop subsidising petroleum, he said two things must happen.“The only reason the price will not move is when you are able to manage your exchange rate effectively and you are able to pump in supply and bring down the exchange rate,” Osifo maintained.“So, if the exchange rate comes down today, we will not be paying subsidy. But with the exchange rate value and the price of crude oil in the international market, we have introduced subsidy.” “They [government] are paying subsidy today,”